Crest Nicholson, the housebuilder, unveiled a return to profit and plans to
re-launch in the stock market, five years after it was taken private as the
industry headed into a crash.

The move to enter the FTSE 250 and raise £50m will be seen as a vote of confidence in the housebuilding sector’s recovery, as well as in prospects for the wider UK market.

Chief executive Stephen Stone said: “The new-buy industry in this country is looking strong for the last period and the prospects are very good.” He cited government backing for the sector through initiatives such as New Buy and First Buy, efforts to smooth the planning system and the broader Funding for Lending Scheme.

Now building around 100,000 homes a year, the housebuilding industry is still well off its 170,000 peak, Mr Stone said, meaning Crest sees room to grow.

The company did not give a price range for its shares but reports have previously valued Crest at around £500m.

The announcement came as the company posted annual pre-tax profits of £62.1m, against a £27m loss the previous year, as revenues rose by 28pc to £408m.

It completed 1,882 sales over the year, 24pc more than it did in 2011, while its average selling price rose 3pc to £230,000 – although this was not adjusted for inflation. Operating margins were 18pc for the year, edging up from 17.7pc.

While some rivals have said they will focus on growing margins rather than chasing sales volumes, Crest, focused on the healthier housing market in the South, is aiming to sell 2,500 new homes annually within “three to four” years.

The 50-year-old company had been taken private in 2007 after a £1.2bn takeover by HBOS and Sir Tom Hunter, the Scottish entrepreneur. But the company ended up in the hands of 24 banks after a debt-for-equity swap in 2009 unwound the debt-fuelled takeover.